SOLUTION MANUAL
Financial Accounting 11th Edition
by Weygandt and Kimmel
all Chapters 1-13 Complete
,TABLE OF CONTENTS
e e
Chapter 1. Accounting in Action
e e e e
Chapter 2. The Recording Process
e e e e
Chapter 3. Adjusting the Accounts
e e e e
Chapter 4. Completing the Accounting Cycle
e e e e e
Chapter 5. Accounting for Merchandising Operations
e e e e e
Chapter 6. Inventories
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Chapter 7. Fraud, Internal Control and Cash
e e e e e e
Chapter 8. Accounting for Receivables
e e e e
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
e e e e e e e e
Chapter 10. Liabilities
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Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ Eq
e e e e e e e e
uity
Chapter 12. Statement of Cash Flows
e e e e e
Chapter 13. Financial Analysis: The Big Picture
e e e e e e e
,CHAPTER 1
e
Accounting in Action e e
ASSIGNMENT CLASSIFICATION TABLE
e e
BriefeExerci A
LearningeObjectives Questions ses DoeIt! Exercises Problems
1. 1,e2,e3,e4,e5 1 1,e2
Identifyetheeactivitieseande
userseassociatedewitheacco
unting.
2.eExplainetheebuildingeblockseofeacco 6,e7,e8,e9,e10 2 3,e4
unting:eethics,eprinciples,eandeas
sumptions.
3. 11,e12,e13,e14. 1,e2,e3,e4,e5 3 5
Stateetheeaccountingeeq 22
uation,eandedefineeitseco
mponents.
4. 15,e16,e18 6,e7,e8,e9 4 6,e7,e8 1A,e2A,e4A,
Analyzeetheeeffectseofebusines 5A
setransactionseonetheeaccountin
geequation.
5. 17,e19,e20,e21, 10,e11 5 8,e9,e10,e11, 2A,e3A,e4A,
Describeetheefourefinancialestat 12,e13,e14,e15, 5A
ementseandehowetheyeareeprepa 16,e17,e18
red.
, ANSWERS TO QUESTIONS e e
1. True.eVirtuallyeeveryeorganizationeandepersoneineouresocietyeuseseaccountingeinformation.eBusinesses,einve
stors,ecreditors,egovernmenteagencies,eandenot-for-
profiteorganizationsemusteuseeaccountingeinformationetoeoperateeeffectively.
LOe 1,e BT:e K,e Difficulty:e Easy,e TOT:e 2e min.,e AACSB:e None,e AICPAe FC:e Reporting,e IMA:e Reporting
2. Accountingeisetheeprocesseofeidentifying,erecording,eande communicatinge theeeconomiceeventseofeaneorgan
izationetoeinterestedeuserseofetheeinformation.eTheefirsteactivityeofetheeaccountingeprocesseisetoeidentifyeeco
nomiceeventsethateareerelevantetoeaeparticularebusiness.eOnceeidentifiedeandemeasured,etheeeventseareerec
ordedetoeprovideeaehistoryeofetheefinancialeactivitieseofetheeorganization.eRecordingeconsistseofekeepingeaech
ronologicalediaryeofetheseemeasuredeeventseineaneorderlyeandesystematicemanner.eTheeinformationeisecomm
unicatedethroughetheepreparationeandedistributioneofeaccountinge reports,e thee moste commone ofe whiche
aree calledefinancialestatements.eAevitaleelementeinetheecommunicationeprocesseisetheeaccountant’seabilityea
nderesponsibilityetoeanalyzeeandeinterpretetheereportedeinformation.
LOe 1,e BT:e K,e Difficulty:e Easy,e TOT:e 2e min.,e AACSB:e None,e AICPAe FC:e Reporting,e IMA:e Reporting
3. (a)eInternaleuserseareethoseewhoeplan,eorganize,eanderunetheebusinesseandethereforeeareeofficerseandeothere
decisionemakers.
(b) Toeassistemanagement,eaccountingeprovideseinternalereports.eExampleseincludeefinancialecomparisons
eofeoperatingealternatives, eprojectionseofe incomeefromenewesalese campaigns,eandeforecastseofe cashen
eedseforetheenexteyear.
LOe 1,e BT:e K,e Difficulty:e Easy,e TOT:e 2e min.,e AACSB:e None,e AICPAe FC:e Reporting,e IMA:e Reporting
4. (a) Investorse(owners)euseeaccountingeinformationetoemakeedecisionsetoebuy,ehold,eoresellestock.
(b) Creditorseuseeaccountingeinformationetoeevaluateetheeriskseofegrantingecrediteorelendingemoney.
LOe 1,e BT:e K,e Difficulty:e Easy,e TOT:e 2e min.,e AACSB:e None,e AICPAe FC:e Reporting,e IMA:e Reporting
5. False.eBookkeepingeusuallyeinvolveseonlyetheerecordingeofeeconomiceeventseandethereforeeisejusteoneeparte
ofetheeentireeaccountingeprocess.eAccounting,eonetheeotherehand,einvolvesetheeentireeprocesseofeidentifying
,erecording,eandecommunicatingeeconomiceevents.
LOe 1,e BT:e C,e Difficulty:e Easy,e TOT:e 2e min.,e AACSB:e None,e AICPAe FC:e Reporting,e IMA:e Reporting
6. HarpereTraveleAgencyeshouldereportetheelandeate$85,000eoneitseDecembere31,e 2022e balanceesheet.eThiseise
trueenoteonlyeatetheetimeetheelandeisepurchased,ebutealsoeoveretheetimeetheelandeiseheld.eInedeterminingewhi
chemeasurementeprincipleetoeusee(historicalecosteorefairevalue)ecompanieseweighetheefactualenatureeofecoste
figureseversusetheerelevanceeofefairevalue.eInegeneral,ecompanieseuseehistoricalecost.eOnlyeinesituationsewhe
reeassetseareeactivelyetradededoe companieseapplyetheefairevalueeprinciple.
LOe 2,e BT:e C,e Difficulty:e Easy,e TOT:e 2e min.,e AACSB:e None,e AICPAe FC:e Measurement,e Analysise ande Interpretatione IMA:eReporting
7. Theemonetaryeuniteassumptionerequiresethateonlyetransactionedataecapableeofebeingeexpressedeinetermseofe
moneyebeeincludedeinetheeaccountingerecords.eThiseassumptioneenableseaccountingetoequantifye(measure)e
economiceevents.
LOe2,eBT:eK,eDifficulty:eEasy,eTOT:e2emin.,eAACSB:eNone,eAICPAeFC:eMeasurement,eAnalysiseandeInterpretatione IMA:eReporting
